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Markets › Microsoft › Gap down

US stock market · price-structure setup

Gap down on Microsoft

On Microsoft the gap down showed up 182 times. The target came first 36% of the time, the stop 62%, and 2% went nowhere within 12 candles.

Counted on Microsoft: daily candles from January 2015 and hourly candles from September 2024.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily7432%66%1%
Hourly10839%59%2%

Microsoft against the rest

ChartsFoundTarget firstStop firstWent nowhere
Microsoft18236%62%2%
All US stock market charts4,69536%61%3%
Every market10,85636%61%4%

Year by year

YearFoundTarget firstStop first
2016933%67%
2018540%60%
2020119%91%
20211040%60%
20221164%36%
20241225%67%
20256037%62%
20265941%58%

The last 8 times

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.

What the gap down is

Price opened below the previous candle's low. It jumped down between the two candles.

Imagine a shop that shuts at night. While it is closed, bad news spreads about a toy, so when the shop opens, the very first price is already below anything paid the day before. On a chart, a candle that starts below the bottom of the candle before it is called a gap down.

The full gap down lesson, video and quiz ›

Other patterns on Microsoft

Inside bar · Stochastic bearish cross · Spinning top · Stochastic bullish cross · MACD bearish cross · Gap up · Volume profile bounce · Doji · RSI overbought drop · EMA 9/21 bullish cross · all of them

The gap down elsewhere

Dow Jones · S&P 500 · Nasdaq 100 · Alibaba · Tesla · Broadcom · Oracle · Nvidia · Meta · Intel · Sensex · Nifty 50 · Nikkei 225 · Sony

Questions

How often does the gap down work on Microsoft?

In 182 cases on Microsoft, the target (1.5 × ATR) came before the stop (1 × ATR) 36% of the time and the stop came first 62%; 2% went nowhere within 12 candles.

What is the gap down?

Price opened below the previous candle's low. It jumped down between the two candles.